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This study aims to examine the factors affecting the decisions of investors. For this, the effect of the information channels (Telegram, Twitter, friend/peer, brokerage house and investors' research), the investors' experience and the bull and bear market effect on investment attitude and intention were investigated. Also, the investors' experience and the bull and bear market effect were applied as moderators in the research. An experimental research method was used, and three studies were designed. According to research results, information channels significantly affected investors' decisions and differed from each other. In addition, the attitudes and intentions towards information channels differ regarding investors' investment experiences. While individuals that have experience are prone to invest more based on their research, potential investors rely more on information channels that provide private messaging. JEL Classification: G1, G4 [ABSTRACT FROM AUTHOR]

In recent times, digital music copyrights have become a new investment property for online music platforms. Digital music copyright investments not only yield profits for platforms but also enhance their core competitiveness. However, various uncertainties are associated with the process of digital music copyright investment. Factors such as the content and genre of the music, the popularity and image of the artist, and unexpected events impact the return on investment. Moreover, realistic constraints such as copyright diversity and subscription conversion influence investment decisions. In such an uncertain environment, this study proposes a nonlinear uncertainty investment decision model that considers chance constraints and realistic constraints. This proposed model is based on the assumption that the playback growth, copyright payment, and subscription conversion rate are uncertain variables. Then, the equivalent form of the model is proven. Finally, numerical examples are provided to investigate the impact of investment preferences and realistic constraints on decision-making. [ABSTRACT FROM AUTHOR]

The transition towards climate-neutral industry is a challenge, particularly for heavy industries like steel and basic chemicals. Existing models for assessing industrial transformation often lack spatial resolution and fail to capture individual investment decisions. Consequently, the spatial interplay between industry transformation, energy availability, infrastructure availability, and the dynamics of discrete investments is inadequately addressed. Here we present a site-specific approach that considers individual industrial sites to simulate discrete investment decisions. The investment decision is modelled as a discrete choice among alternative technologies with their total cost of ownership as the main decision criterion. Process costs depend on the scenario-specific assumptions, such as energy carrier prices, policy instruments and local infrastructures. The age of production units and their reinvestment cycles are considered the main restrictions on the dynamics of the transition. The results provide high spatial resolution to capture the spatial and temporal dynamics of industry transition under varying process and policy assumptions. The presented model and its results can be coupled with energy system models to assess the implications of site-specific industry transition on energy system related research questions. We conduct an exemplary case study for a transformation pathway of the European primary steel production. [ABSTRACT FROM AUTHOR]

Ethical investing has recently been on the rise in popularity. Nevertheless, at the same time, the investment generates lower returns than its competitors. So, ethical investors have to sacrifice some returns to keep investing ethically. This study examines the direct influence and mediation of willingness to sacrifice variables on ethical investment decisions. The method used is Structural Equation Modelling Partial Least Square (SEM-PLS). Results show that willingness to sacrifice influences ethical investment decisions positively and significantly. Furthermore, willingness to sacrifice has been shown to mediate the influence of non-financial motives on ethical investment decisions. It shows a shift in behaviour, and investors are willing to ignore some of the returns obtained to achieve non-financial goals. [ABSTRACT FROM AUTHOR]

Copyright of Jurnal Reviu Akuntansi dan Keuangan (JRAK) is the property of Universitas Muhammadiyah Malang and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Objective: The objective of the article is to explore the investment decision criteria of venture capitalists (VCs) in the cellular agriculture industry, focusing particularly on the initial screening phase. It seeks to understand the relative importance of various criteria that VCs consider when selecting cellular agriculture ventures for early-stage investment. Research Design & Methods: The research employs a multi-method approach, including expert interviews and a survey-based choice-based conjoint (CBC) experiment. We conducted interviews with investment managers from VC firms, an incubator, and a nonprofit organisation. The CBC experiment involved 44 individual investors, focusing on various investment criteria like entrepreneurial spirit, professional background, and scalability. Findings: The study reveals that in the cellular agriculture sector, investors place the highest importance on scalability, the entrepreneurial spirit of the founding team, and the value-added of the product and technology. Other criteria like the team's track record, proof of concept, degree of competition, and professional background are considered less important. This emphasis on scalability and product value differs from nonindustry-specific studies where team-related criteria often dominate. Implications & Recommendations: For new ventures in cellular agriculture, understanding these criteria can help tailor their investment proposals more effectively. For cellular agriculture investors and policymakers, these insights can assist in benchmarking and shaping policies to support industry development. Recommendations for policymakers include funding open-access R&D and creating critical infrastructure. Contribution & Value Added: This article contributes significantly to the field by applying the conjoint study method in the context of finance, which is relatively novel. This approach offers valuable insights that surpass those obtained from traditional surveys, providing a more nuanced understanding of investment decision criteria. It is one of the first to systematically investigate these criteria in the growing area of cellular agriculture. The findings add a new dimension to the 'jockey (entrepreneur) vs horse (product)' debate in venture capital decisions and offer practical guidance for entrepreneurs and investors in this sector, making it a noteworthy addition to entrepreneurial finance and venture capital studies. [ABSTRACT FROM AUTHOR]

Investor behavioral factors determine the investment decisions of individual investors in the stock market. The study investigated behavioral factors driving investment decisions in Nepal’s stock market, contributing to existing literature. The behavioral factors comprise heuristics, prospects, and herding as predictors and investment decisions as a response variable. Thus, the study adopted a descriptive and analytical research design to test the research hypotheses and resolve the research questions and issues. A survey was conducted among individual investors registered with Nepal’s trading management system (TMS). A total of 526 structured questionnaires were distributed to targeted respondents, and only 350 useful questionnaires (66.54 percent) were received. The survey data of cross-sectional type were encompassed with a random clustering sampling method for this study. Further, the study employed descriptive statistics to depict the characteristics of respondents’ profiles, correlation analysis to assess the association between predictors and response variables, and linear regression analysis to investigate the impact of predictors on response variables. Similarly, Cronbach’s alpha was tested to observe reliability in the study. The survey findings showed a positive and significant association between heuristics and investment decisions (β = 0.088, p < 0.05). The prospect is positively linked with the individual’s investment decision but found insignificant (β = 0.011, p > 0.05). Finally, herding found a positive and significant association with investment decisions (β = 0.235, p < 0.05). The findings of this study contribute to existing theory and can be a benchmark for decision-makers and policymakers, investors, and others.

Carbon Capture, Utilization and Storage (CCUS) is an indispensable technology for achieving a net-zero emission society. The offshore CCUS project is still in its infancy. To promote its sustainable development, developing a comprehensive framework for investment decision-making is very crucial. First, a comprehensive evaluation criteria system is established. Second, in order to characterize the ambiguity and uncertainty of information in the process of making decisions, the interval-valued fermatean fuzzy set (IVFFS) is introduced, and the extended variance method of IVFFS is proposed to systematically calculate the weights of experts. Then, the power weighted average (PWA) operator based similarity measure of IVFFSs is developed to aggregate different expert information. Meanwhile, the fuzzy-weighted zero-inconsistency (FWZIC) method and the method based on the removal effects of criteria (MEREC) are used to determine the criteria weights. In addition, considering the interactions between the criteria, we introduce the Hamacher operator into the measurement of alternatives and ranking according to the compromise solution (MARCOS) method to select the optimal alternative in the interval-valued fermatean fuzzy (IVFF) environment. The suggested framework is then used to analyse a case study. After that, sensitivity and comparative analyses are conducted to confirm its robustness and viability. This study creates a practical investment framework for offshore CCUS projects, identifies a number of investment-sensitive criteria and provides management insights. The proposed framework expands the methods and applications in the field of decision-making and provides a scientific approach for investment decision-making in offshore CCUS projects, which can be a useful reference for managers. [ABSTRACT FROM AUTHOR]

The study aims to determine the influence of behavioural biases on financial risk propensity. It also attempts to examine the influence of financial risk propensity on investment decisions and the mediational role of financial risk propensity on the relationship between behavioural biases and investment decisions. A survey by questionnaire method is adopted to collect data from 203 respondents using the purposive sampling technique among the investors. The study has found that prospect, herding, and heuristics dimensions of behavioural bias have a significant impact on financial risk propensity, and in turn, financial risk propensity has a significant impact on investment decisions. The results of the study can help to develop more realistic investment valuation models in light of the revised risk-return expectations of investors who act contrary to the traditional concept of rational utility maximisers.

The goal of this study is to examine the factors influencing individual household investment decisions in Tanzania. Data is collected from a total of one thousand six hundred individual households. Descriptive analysis is used to summarize the results with logistic regression applied to model the investment decision. The individual households’ investment decisions are observed to be less influenced by the factors of return and risk. However, household characteristics such as house ownership, household size, age, gender, level of income and education significantly influence the investment decision. The role played by households’ characteristics in investment decisions offers a suggestive direction that ought to be taken in implementing transformative policies. [ABSTRACT FROM AUTHOR]

The development of digital economy in Indonesia is growing rapidly along with the increasing use of internet and technology in various sectors. Fintech services are one of the main drivers of this development, especially in increasing financial inclusion. This study aims to explore the impact of fintech services on investment decisions among millennials. This study uses quantitative method with survey as the data collection technique, involving respondents who are active users of fintech platforms. The data collected was analysed using linear regression. The results of the analysis show that ease of access, low cost, transparency and time flexibility significantly influence their investment decisions. In addition, the study identified the importance of financial education in improving users' literacy and confidence in investing. The findings emphasise the important role of fintech in encouraging millennial participation in financial markets, as well as the need for appropriate regulation to protect consumers and support the industry's sustainable growth. [ABSTRACT FROM AUTHOR]

With the increasing intensification of market competition, companies need to implement innovative strategies to gain market advantages. As an effective measure for companies to reduce agency costs between management and shareholders and alleviate the conflict of interest between the two, equity incentive can directly affect the behaviour of company executives. Investment decision is the foundation of a company's healthy growth and cash flow growth in the future. This paper selects the panel data of Chinese listed companies from 2011 to 2021 as a sample, uses the quality of internal control as an intermediary variable in the process of measuring the implementation of equity incentives, and empirically studies the relationship between equity incentives and corporate investment decisions. The results show that there is a positive correlation between equity incentives and investment decisions, and the quality of internal control plays an intermediary role between the two. Equity incentive can optimize the internal control, improve the quality of internal control, so as to effectively promote the investment decision of companies. The implementation of equity incentives gives companies a competitive advantage while also adding momentum to economic development, thereby enhancing national competitiveness. [ABSTRACT FROM AUTHOR]

With the financial burden of government increasing, the Public-Private-Partnership (PPP) model has become an alternative method to develop public infrastructure. To efficiently promote the private sector to participate in PPP, making a proper incentive policy is critical for the government. This paper examined the effects of two governmental support policies, i.e., tax reduction and risk-sharing, on the investment decision of the private sector, and further compared the relative efficacy of these two policies. The results manifest that: first, both tax reduction and risk-sharing policies motivate private sector to invest earlier; second, although the capital structure decision of the private sector is free from the influence of the risk-sharing policy, the optimal debt level under tax reduction policy shows a U-shape relationship with the incentive ratio; third, when completion risk is large, there exists efficiency loss for total benefits of the project under the risk-sharing incentive policy. Besides, the efficacy of two incentive policies varies depending on the scenario. Firstly, given the same incentive ratio, the risk-sharing policy proves to be more effective than the tax reduction policy. Secondly, when considering the same level of incentive loss for government, tax reduction policy outperforms than risk-sharing policy in terms of efficacy. Thirdly, the efficacy of these policies also depends on the completion risk level: under small completion risk, risk-sharing policy is more effective, whereas under large completion risk, the tax reduction policy takes precedence. Based on these findings, some managerial insights that could assist government in formulating more effective incentive policies are proposed. [ABSTRACT FROM AUTHOR]

The EU taxonomy, introduced in 2022, is a comprehensive classification system categorizing environmentally sustainable economic activities. This study examines the impact of incorporating EU taxonomy data into corporate environmental disclosure on investor judgments. Through five experimental cases involving standard environmental disclosure and additional moderate/positive/negative taxonomy‐aligned information, we assessed institutional and retail investor evaluations. Results reveal that taxonomy inclusion significantly influences investor judgments, particularly among institutional investors who are more adept at recognizing and penalizing negative information. Clear taxonomy‐aligned data in combination with standard environmental information shows no steering effect among retail investors. Despite underperforming taxonomy indicators, environmental information generally conveys positive signals to retail investors. [ABSTRACT FROM AUTHOR]

Financial literacy is of utmost relevance in the field of entrepreneurship, especially in developing countries. However, what builds financial literacy and how it shapes investment decision-making of women entrepreneurs is an exiguously researched area. Building on this gap, this study postulates that women entrepreneurs' prospect behavioural factors (loss aversion, regret aversion, mental accounting, and self-control) impact their investment decision process through the intervening role of financial literacy. Based on a stratified sample of 579 women entrepreneurs operating in Punjab, Pakistan, structural equation modelling was used to analyse the hypothesized relationship among variables. Findings showed that loss aversion, regret aversion, mental accounting, and self-control significantly influenced women's financial literacy and investment decision process, whereas no impact of regret aversion was traced on investment decision-making. Thus, our results offered robust support that financial literacy stimulated by women entrepreneurs' prospect behaviour invigorates their investment decision power. [ABSTRACT FROM AUTHOR]

This study explores the concept of reference dependence in decision-making behavior, particularly in the realm of investment portfolios. Previous research has established that an individual's own circumstances and societal surroundings play a pivotal role in shaping their perception of risk. However, there has been limited exploration into the dynamic nature of reference points in investment decision-making. To address this gap in the literature, the current study is aimed at investigating the performances of relevant dynamic reference points in investment portfolios. In doing so, the personal experience and upward pacesetter reference points are established, and a comparative robust portfolio model incorporating the CVaR measure is utilized. The impacts of different reference behaviors on the proposed portfolio model's performance are also examined. Furthermore, to enhance the portfolio model's out-of-sample performance, a scenario formation method that leverages clustering techniques is proposed. The performances of several clustering methods, including classic hierarchical and spectral clustering, as well as reciprocal-nearest-neighbors supported clustering, are compared. The empirical results indicate that the positive behavior of the personal experience reference point yields a better expected return, while the negative behavior exhibits a lower level of risk. Moreover, the results suggest that the utilization of spectral clustering can significantly improve the out-of-sample performance of the proposed robust portfolio model. [ABSTRACT FROM AUTHOR]

The COVID-19 pandemic hit the world in late 2019, bringing many human activities to a halt. Several phenomena occurred as a result of these difficult conditions. Due to the rapid development of technology and the use of technology to earn income is new to some people, many people are exposed to fraud that occurs in the field of financial technology. This study aims to find out how people's financial literacy index, how they choose to invest, and how their financial literacy affects investment decisions. Since the millennial generation is the majority of productive age in Indonesia, this research targets the millennial generation. This research is limited to the Bandung City area because there are differences in Regional Minimum Wage (UMR) and investment decision-making behavior between cities. This verification quantitative research uses purposive sampling method with a total sample size of 1,275,520 people. Data was collected using an online questionnaire and the SPSS program was used to analyze the data of 400 respondents to find out how the level of financial literacy affects investment decisions and to identify all factors that affect financial literacy. The three factors used to measure the effect of financial literacy are financial knowledge, behavior and attitude. Descriptive statistics, normality, heteroscedasticity, multicollinearity and multiple linear regressions were the SPSS tests performed. This study found that financial knowledge, behavior and attitude together have a significant influence simultaneously on investment decisions. In addition, this study also found that financial knowledge, behavior and attitude each have a partially significant influence on investment decisions. [ABSTRACT FROM AUTHOR]

Objective: The primary objective of this research is to identify and analyze the factors affecting the success of startups, with a specific focus on the distinct personality traits of investors and their impact on investment decisions in initial coin offering. This study aims to investigate how the personality traits of neuroticism and openness to experience influence investment decisions and to explore the role of cognitive legitimacy in moderating these relationships. By integrating theories of personality and legitimacy, this research seeks to provide a deeper understanding of the psychological factors that drive investment behaviors in the context of initial coin offerings (ICOs). Method: This study employs a phenomenological research design, leveraging qualitative and quantitative methods to explore the subjective experiences of investors in initial coin offering. The research follows a structured approach encompassing the following steps: A two-stage sampling process was adopted. In the first stage, tokens from ICOs conducted between 2020 and 2022 were selected using simple random sampling. Reliable sources such as Coinmarketcap.com, Crunchbase.com, and ICOcrunch.com provided the list of tokens. A random selection program written in Python was utilized to choose 40 sample tokens from this list, ensuring an unbiased representation. Data on investment decisions were collected through a standard questionnaire distributed to a large and diverse sample of investors. The questionnaire was shared via prominent Telegram channels which collectively cover a broad international investor base. Neuroticism and Openness to Experience traits were measured using a standardized Big Five personality factors questionnaire. Cognitive Legitimacy was assessed through the analysis of social media interactions, particularly on Twitter (X). A developer-created account was used to gather data on tweets containing specific keywords related to the ICOs. The data included tweet content, likes, retweets, user IDs, follower counts, and weet sentiments categorized as positive, neutral, or negative. Sentiment analysis was performed using the RoBERTa pre-trained language model, known for its high accuracy in text classification tasks. WarpPLS software was employed to conduct structural equation modeling (SEM), allowing for the examination of complex relationships between variables. The analysis focused on the direct effects of neuroticism and openness to experience on investment decisions, and the moderating effect of cognitive legitimacy. Reliability was tested using Average Variance Extracted (AVE), with thresholds set to ensure convergent validity. Results: The study yielded several key findings that highlight the interplay between personality traits, cognitive legitimacy, and investment decisions: 1. Impact of Neuroticism: - High levels of neuroticism were found to have a significant negative impact on investment decisions in successful ICOs. Investors characterized by high neuroticism exhibited tendencies towards risk aversion, pessimism, and lower trust in new ventures, making them less likely to participate in these offerings. 2. Impact of Openness to Experience: - Conversely, investors with high openness to experience were more inclined to invest in innovative and novel projects. This personality trait positively correlated with investment decisions, as these individuals are typically more open to risk-taking and exploring new opportunities. 3. Role of Cognitive Legitimacy: - Cognitive legitimacy significantly enhanced investment decisions. Startups that demonstrated high cognitive legitimacy through transparent and credible actions on social media were more successful in attracting investors. However, cognitive legitimacy did not act as a moderating variable between personality traits and investment decisions but had a strong direct effect on increasing investment decisions. Hypotheses Testing: -H1: High neuroticism leads to a decrease in investment in successful initial offerings. (Confirmed) -H2: Higher cognitive legitimacy of a business leads to more investment in successful products. (Confirmed) -H3: Cognitive legitimacy moderates the relationship between neuroticism and investment in successful products. (Rejected) -H4: Openness to experience leads to increased investment in successful initial offerings. (Confirmed) -H5: Cognitive legitimacy moderates the relationship between openness to experience and investment in successful ventures. (Rejected) Conclusion: The research concludes that personality traits, particularly neuroticism and openness to experience, play a crucial role in shaping investment decisions in the context of crowdfunding. Neuroticism negatively influences investment decisions, making individuals with this trait less likely to invest in new ventures. In contrast, openness to experience has a positive impact, with such individuals being more inclined towards innovative investments. Cognitive legitimacy emerged as a vital factor for attracting investments. Startups that can build strong cognitive legitimacy by maintaining transparency and credibility on social media are more likely to succeed in their fundraising efforts. Although cognitive legitimacy does not moderate the relationship between personality traits and investment decisions, its direct positive impact on investment decisions underscores its importance. Implications for Practice: -For Startups: Developing and maintaining cognitive legitimacy through transparent and credible communication on social media is essential for attracting a diverse investor base. Understanding the personality traits of potential investors can help tailor communication strategies to better engage with them. -For Researchers: The study opens new avenues for exploring the impact of other personality traits and forms of legitimacy on investment decisions. Future research could expand the scope to include traits such as extraversion and conscientiousness, and investigate the effects of moral and pragmatic legitimacy. The study focuses on two specific personality traits, suggesting a need for future research to consider a broader range of traits. Additionally, exploring other forms of legitimacy, such as moral or pragmatic legitimacy, could provide a more comprehensive understanding of their impact on investment decisions. Longitudinal studies are recommended to examine how these relationships evolve over time, especially in the dynamic and rapidly changing ICO market. In summary, this research highlights the significant role of personality traits and cognitive legitimacy in influencing investment decisions in the context of crowdfunding. The findings provide valuable insights for startups and campaign developers seeking to enhance their legitimacy and attract diverse investor profiles. The study contributes to the growing field of financial psychology and offers practical recommendations for improving fundraising strategies in the digital age. [ABSTRACT FROM AUTHOR]

Somatic markers have been evidenced as determinant factors in human behavior. In particular, the concepts of somatic reward and punishment have been related to the decision-making process; both reward and somatic punishment represent bodily states with positive or negative sensations, respectively. In this research work, we have designed a mechanism to generate artificial somatic punishments in an autonomous system. An autonomous system is understood as a system capable of performing autonomous behavior and decision making. We incorporated this mechanism within a decision model oriented to support decision making on stock markets. Our model focuses on using artificial somatic punishments as a tool to guide the decisions of an autonomous system. To validate our proposal, we defined an experimental scenario using official data from Standard & Poor's 500 and the Dow Jones index, in which we evaluated the decisions made by the autonomous system based on artificial somatic punishments in a general investment process using 10,000 independent iterations. In the investment process, the autonomous system applied an active investment strategy combined with an artificial somatic index. The results show that this autonomous system presented a higher level of investment decision effectiveness, understood as the achievement of greater wealth over time, as measured by profitability, utility, and Sharpe Ratio indicators, relative to an industry benchmark. [ABSTRACT FROM AUTHOR]

Copyright of Jurnal Ekonomi Manajemen Sistem Informasi (JEMSI) is the property of Dinasti Publisher and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

This paper analyzes the role of newborn gender in household investment decisions. Parenting a new baby is associated with a reduction of the share of financial wealth held as cash and an increase in risky investments. The reallocation is however gender‐heterogeneous: the increase in the share of both total and financial wealth allocated to risky assets when parenting girls is reduced for households parenting boys. The effect is driven by the first child. Parents of newborn girls hold riskier portfolios because they make financial decisions influenced by their expectations on the autonomy and financial independence of newborns in adulthood. [ABSTRACT FROM AUTHOR]

This study aims to examine relevant research on the integration of environmental, social, and governance (ESG) factors into the investment decision-making processes of institutional investors. By doing so, it seeks to promote sustained returns that drive value and foster growth. The research involved identifying and analyzing literature on ESG integration within the investment decisions of institutional investors. Data for this study was collected from three major databases: Web of Science, ScienceDirect, and JSTOR. Keywords related to environmental, social, and governance criteria, investment decisions, and sustainable investments were used, with a focus on institutional investors. The studies selected for review were required to address both sustainability (ESG) and investment themes and to have been published in English between 2018 and 2022. Upon reviewing the selected studies, a significant gap was identified: there is limited research exploring the role of ESG criteria in the investment decision-making processes of institutional investors in Africa, particularly in Morocco. Notably, and to the best of our knowledge, no published studies have examined the influence of ESG factors on investment decision-making in Moroccan companies or the Moroccan stock market. Instead, most articles only focus on the impact of ESG risks on financial performance.

Nowadays, investment has major importance for future contingencies. The millennials are one that currently take over a large number of capital market investors. To advocate optimal and sustainable decision-making in stock investment, it is important to explore the determinants of investment decisions which include financial literacy, financial self-efficacy, and risk perception. The study was conducted to assess the influence of financial literacy, financial self-efficacy, financial technology literacy, and risk perception on stock investment decisions in the millennial generation of Yogyakarta Special Region. The population of this study was millennial stock investors in the D.I. Yogyakarta province. The sample is used with criteria that age in between investing 28–43 years old; namely 115 people. The data was collected via a survey strategy and then analyzed using the SEM-PLS technique. Based on the research findings, it can be concluded that financial literacy has a significant positive effect on stock investment decisions among the millennials in Yogyakarta. Conversely, financial self-efficacy negatively impacts stock investment decisions significantly. Additionally, financial technology literacy also demonstrates a positive and significant influence on stock investment decisions. In contrast, risk perception does not appear to affect stock investment decisions among millennials in Yogyakarta. Theoretical and practical implications are discussed in the last section of this article.

This research aims to investigate the influence of behavioral finance on stock investment decision-making in Indonesia, considering both rational and irrational behaviors. Key behavioral finance factors, including overconfidence, herding bias, mental accounting, and loss aversion, are examined to understand their impact on stock investment decisions, the financial literacy as moderating variables has been added to the model. A self-administered questionnaires were distributed to 391 active trading stock investor in Indonesia. Using Partial Least Squares method, the results shows that loss aversion and overconfidence negatively influence the investment decision. Further, the analysis confirmed the role of financial literacy as moderating variable for mental accounting and overconfidence. It is also consistent with the notion that financial literacy at least in terms of mental accounting biases under some conditions might actually reinforce certain specific cognitive shortcuts. This study’s results suggest policymakers and financial educators should work to increase investors’ literacy about finance, as well as their ability to identify biases they hold which could be used against them when making investment decisions.

AbstractAn easy-to-read report may carry positive information for decision making and conversely. In that spirit, this paper investigates the relationship between the readability of companies’ annual reports, defined as the easiness to read, understand, and extract information from the reports, and investment decisions of Singapore companies. Empirical results with an DGMM analysis on 251 domestic companies listed on the Singapore Stock Exchange (SGX) show a positive relationship between the readability of annual reports this year and investments next year. As such, reports’ readability can serve as a signal significant to predict companies’ future investments. Our findings are consistent with signaling theory and contribute significantly to the literature for empirical investigations on the relationship of annual reports’ readability and firms’ investment decisions.

AbstractThis study examines how Corporate Social Responsibility (CSR) disclosure and Sustainable Development Goals (SDGs) affect investment decisions mediated by Environmental, Social, and Governance (ESG) scores. Structural Equation Modeling (SEM) was used to test the hypotheses of this study using the SmartPLS 3.0 programme. Testing the router model is done using algorithmic techniques, and the inner model is tested by bootstrapping and model testing using goodness of fit. By analysing data from 79 companies listed on the Indonesia Stock Exchange (IDX), we found that CSR and SDGs disclosures positively affect ESG scores. ESG scores also positively affect investment decisions as measured by earnings per share. The findings of this test indicate that ESG scores mediate the relationship between CSR disclosure and earnings per share in a statistically significant way. However, the mediation of ESG score on the relationship between SDGs disclosure and earnings per share was not found to have a significant effect.

AbstractIn the context developing country, the relationship between legal certainty and investment decision is still an underexplored yet important context. This study investigates the effect of independent judicial system, legal culture, and the existence of government authority as the determinant factors that influence legal certainty and the influence of legal certainty on investment decisions in the context of companies listed on the Indonesian stock exchange. The research employs partial least squares structural equation modeling to analyze primary survey data gathered from 270 investors who are clients of Investment Management Companies in Indonesia. The results indicate that an independent judicial system, legal culture, and the existence of government authority significant and positively affecting legal certainty and legal certainty has a significant and positive effect on investment decisions. This findings have various intriguing implications and provide valuable insights into how policymakers can improve their municipal bond regulation strategy to have better legal certainty; which will encourage more investors to invest.